By Anna Doga
Greek systemic banks will reportedly deal with six out of 10 non-performing loans with “internal management”, with roughly two out of 10 such loans set for resale on secondary markets, according to reports.
Greek banks’ strategy will reportedly be to manage “bad loan” portfolios with their own resources, with some 20 percent of the total, which now exceeds a whopping 100 billion euros, up for sale to distress funds.
A finalization of a revised framework for managing NPLs still awaits the now delayed first review of the Greek program (third bailout).
The issue of NPLs is one of the main issues still unresolved in negotiations between Athens and institutional creditors — Commission, ECB, ESM, IMF.
The explosive rise in the number and total of NPLs is nevertheless directly related to the ongoing recession and unemployment in the country, something cited in a recent special study by Eurobank.
